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Rupee settles lower on Monday
Oct-18-2021

Indian rupee ended significantly lower on Monday on account of sustained dollar demand from importers and banks. Sentiments remained fragile as data released by the government showed India's merchandise trade deficit widened to a record $22.6 billion in September, the highest in at least about 14 years, as crude oil and gold imports surged. Also, jump in global crude oil prices, continued to dampen investors' sentiment for the Indian currency by worsening the outlook on domestic inflation and the country’s trade deficit. Meanwhile, private report stated that there is a crisis looming for Indian exporter amid shortage of most essential products- from intermediates to chemicals to coal to semi-conductors. There are large-scale traffic jams at very many of the major ports in the globe with vessels not getting berthing space. On the global front; dollar headed back on Monday towards a one-year high hit last week as rising inflation expectations and higher bond yields boosted its appeal against its rivals.

Finally, the rupee ended 75.35, weaker by 9 paise from its previous close of 75.26 on Thursday. The currency touched a high and low of 75.38 and 75.24 respectively.

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